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Propane vs. Natural Gas vs. Heating Oil: Indiana Home Heating Fuel Comparison

Households have a host of fuels to choose from when it comes to heating. Natural Gas is the most common choice in Indiana, used by 2,796,352 or 52% of residents. The 2nd most popular primary heating fuel for Indiana homeowners is Electricity, used by 1,447,260 homes (27%). The rest of the homes are heated with Heating Oil (12%), Propane (5%), Wood (2%), and Coal (1%).

Indiana County Residential Primary Home Heating Fuel (No. of Households)

YearNatural GasPropaneElectricityOilWoodSolarOther
20262,805,138291,5021,481,338646,118111,0067,89231,343
20252,796,352282,1821,447,260663,450112,2707,20431,146
20242,785,913276,5981,396,275685,083111,4166,15532,085
20232,698,411278,6211,389,291717,601111,5406,96444,558
20222,710,114282,6251,337,240742,118105,1475,28241,959
20212,677,533267,4541,287,322760,867109,8324,86746,436
20202,656,062251,4721,254,850776,616113,9004,55441,326
20192,634,591235,4901,222,377792,365117,9694,24136,216
20182,592,386225,4761,198,450806,761128,1102,19735,172
20172,598,275222,6501,158,937790,353127,1982,22535,586
20162,551,248209,7191,133,797805,822125,5831,63934,565
20152,549,385200,7541,103,995837,082141,8352,11738,034
20142,528,694198,2961,087,741858,758148,2561,76036,886
20132,516,052195,7991,086,074870,064148,5971,40833,941
20122,530,063188,8801,046,982936,674145,0891,48431,494
20112,516,883178,3871,019,764973,749137,6251,54528,259
20102,530,446177,562997,925993,832126,07459729,423

Heating Oil (Fuel Oil) Use in Indiana

Fuel oil has become less frequently used in Indiana. In the 5 years since 2020, the number of homeowners using number two heating oil fell from 776,616 to 663,450, a 15% drop.

Propane vs. Natural Gas use for home heating in Indiana

Between 2020 and today, the number of households using propane as the primary space heating fuel jumped from 251,472 to 282,182, a 12% change. Comparing 2020 and today, the number of homes using natural gas as the primary space heating fuel ramped up from 2,656,062 to 2,796,352, a 5% change.

Electricity use for home heating in Indiana

Electric heat pump systems for home heating are more popular in Indiana. Since 2020, the number of homes heating with electricity increased from 1,254,850 to 1,447,260, a 15% change.

Adoption of solar home heating systems in Indiana

Solar is the most environmentally friendly of all heating fuels. With an “active” solar heating system, liquid is circulated between solar panels on a home’s roof and a heat energy storage tank (similar to a hot water heater) in the basement. Currently, 7,204 homes in Indiana are heated with active solar arrays. This is a 58% gain from 2020, when 4,554 homes had active solar heating.

Indiana County Heating Oil Trends

Last year, Indiana County homeowners purchased a total of 2 million gallons of heating oil.

Short Term Trends

Indiana’s overall oil consumption varies each year as winter conditions change. As the temperature outside dips, homes’ boilers need to burn more and more oil to maintain the temperature that the thermostat is set to. Last winter, the average outside temperature in Indiana was 29.3°F, which was 5.5°F colder than the prior winter's average outside temperature.

Indiana County Average Winter Temperature

Heating SeasonAverage Temperature
2024 - 202529.3° F
2023 - 202434.8° F

Indiana County Homeowner’s Guide to Selecting an Oil Company

For Indiana families heating with number two heating oil, picking which of the 8 heating oil companies that serve Indiana is an important decision.

Full Service Oil Companies: Homeowners who can afford a “set-it-and-forget-it” heating system select one of the 0 “full-service” oil companies that serve Indiana. Full service companies such as or offer families annual contracts which consist of a combined package of both automatic number two heating oil delivery and heating system repair. With an automatic oil delivery contract, the company tracks your home’s fuel oil consumption and makes deliveries when your tank is running low. The client does not need to monitor the level of the oil tank or place individual orders.

Discount Oil Companies: also referred to as “COD Fuel” or “Cash Heating Oil” companies, discount oil companies are for families who are budget-conscious. With discount oil companies, in exchange for lower prices, you monitor the fuel oil level in your tank, and you place an oil order either when the level runs low or just before a major snowstorm. Some of the 2 Indiana cash heating oil companies serving Indiana include Barber Oil Company Inc and Townsend Gas & Oil Inc.

Indiana Fuel Oil Company Fast Facts: Oil Companies Serving Indiana: 8 companies .

Average Number of Indiana Households Served per Number Two Heating Oil company : 82931

Indiana Heating Oil Delivery Overview

663,450 houses in Indiana heat their homes with oil. This makes oil delivery essential, especially when Indiana temperatures drop as low as 23.2° F each winter. 12.3% of Indiana residences rely on oil delivery each winter.

6.1% of Indiana County Households Rely On Heating Oil Delivery Each Winter

Indiana County HouseholdsIndiana County Heating Oil Households
10.7M663,450

58 Indiana Number Two Heating Oil Companies Homeowners Can Count On

With 507,486,889 gallons of fuel oil delivered to Indiana homeowners last winter, the Indiana community looks to its 58 oil companies to keep their oil tanks full. Oil delivery is a two step process: First, an oil truck picks up oil at the nearest bulk fuel terminal (also known as a “rack”). In the case of Indiana, two of the closest terminals are Ergon in Newell, PA and Etmt in Blawnox, PA. Then, the truck delivers the #2 heating oil to residences and companies throughout Indiana and the surrounding region.